Loading...
HomeMy WebLinkAboutOrdinance 1937 ORDINANCE NO. I AN ORDINANCE REGULATING AND LICENSING CERTAIN PERSONS, FIRMS AND CORPORATIONS ENGAGED IN THE BUSINESS OF LENDING MONEY WITHOUT SECURITY WITHIN THE CORPORATE LIMITS OF THE CITY OF FORT WORTH; EXCEPTING CERTAIN PERSONS, FIRMS AND CORPORATIONS; PROVIDING FOR THE INSPECTION AND SUPERVISION OF SUCH PERSONS, FIRMS AND CORPORATIONS AND THEIR BUSINESSES; PROVIDING FOR THE ISSUANCE, DISPLAY AND REVOCATION OF LICENSES; PRESCRIBING A BOND; PROVIDING FOR THE DESIGNATION OF AN AGENT UPON WHOM SERVICE MAY BE HAD; PRESCRIBING A LICENSE FEE; PRO- HIBITING THE USE OF ARTIFICE OR SUBTERFUGE; PROHIBITING COMMUNICATIONS WITH INTENT TO HARASS OR ANNOY; PROHIBITING COMMUNICATIONS TO COL- LECT USURY; PROVIDING FOR THE KEEPING AND IN- SPECTION OF RECORDS; PROVIDING FOR THE REPEAL OF ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; PROVIDING THAT THE INVALIDITY OF A PART OF THIS ORDINANCE SHALL IN NO 'KAY AFFECT THE REMAINING ONES; PROVIDING A PENALTY FOR THE VIOLATION OF ANY OF ITS PROVISIONS; AND PRESCRIBING THE EFFECTIVE DATE OF THIS - _- ORDINANCE. WHEREAS, persons, firms and corporations are engaged in the business of lending money without security and are demand- ing and receiving exorbitant and unconscionable rates of in- terest, in violation of the state law, and such persons, firms and corporations so engaged in the business of lending money, in an attempt to obtain payment of the moneys so loaned, do wilfully and maliciously annoy the employers of their borrowers by continuous telephone calls to the annoyance and harassment of the employers and their employees in the ordinary course of business, and generally affects the public interest, all of which requires strict supervision and inspection of such money- lending businesses; and, WHEREAS, it is deemed expedient and in the interest of the public welfare to regulate and inspect such persons, firms and corporations engaged in the business of lending money with- out security; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. It shall hereafter be unlawful for any person, firm or corporation, either as principal or as agent or representative of another, to engage in the business of lending money to in- dividuals without security, within the corporate limits of the City of Fort Worth, Texas, without first having obtained a license therefor and displaying the same as provided herein. The fact that the lender may require a surety guarantor or in- dorser shall not exempt the lender from the provisions of this ordinance. SECTION 2. Every person, f irm or corporation, before opening, main- taining and/or operating such a business for the lending of money in the City of Fort Worth, shall make an application for a license for each such business maintained or operated by him, upon a blank to be furnished by the City Secretary, on a form prescribed by such officer, which shall include among other things the full name and address of the applicant, both resi- dence and place of business, including the street and number; and If applicant is a partnership or association, of every mem- - - ber treof, and if a corporation, of each officer or director thereof; also the name under which the business is to be con- ducted. In the application for license, the applicant shall al- so designate, name, appoint and maintain an agent in the City of Fort Worth upon whom service may be had in the event of any suit filed against such applicant in any action arising from a violation of this ordinance, and for the recovery of damages for the charging of a usurious rate of interest prohibited by law. In the event a change is made in the residence or address of the agent, all information about such change shall be fur- nished promptly to the City Secretary, including the name and address of the substituted agent in the event the prior agent shall have moved outside of the City of Fort Worth. A separate license and application shall be required for each establishment, office or place of business conducting the business of lending money without security, regardless of the ownership of such busi- ness. Such application for license shall be sworn to by the applicant. SECTION 3. Such license shall state the address at which the busi- ness is to be conducted and the name under which the business is to be conducted, and such license shall be kept conspicuously posted in the place of business of the licensee where it may be readily available for inspection by the public. SECTION 4. Licenses shall not be transferable or assignable, but shall be valid only for the use of the licensee named therein; nor shall any licensee maintain more than one place of business under the same license, but the City Secretary may issue more than one license to the same licensee upon compliance with all the provisions of this ordinance governing an original issuance of a license for each new license. SECTION 5. Such license shall be valid only at the address stated in said license; provided, however, that should a licensee de- sire to change his place of business to another location, he shall give written notice thereof to the City Secretary who shall attach to the license, in writing, his record of the change and the date thereof, which shall be authority for the operation of such business under such license at such new location. SECTION 6. After having filed said application and bond with the City Secretary and secured said license as herein provided for, the licensee shall pay to the Assessor and Collector of Taxes the sum of Fifteen Dollars ($15.00) as an annual license fee. SECTION ?. That before any license shall be issued as herein pro- vided, the applicant shall furnish in writing a good and suf- ficient bond in the sum of One Thousand Dollars ($1,000.00) to be approved by the City Manager. Such bond shall be conditioned that the holder of the license shall well and truly pay to the Mayor of the City of Fort Worth or his successors in office, in Fort Worth, Tarrant County, Texas, any final judgment that may be rendered 4gainst such licensee not to exceed the amount of said bond, for the benefit of every person who may recover a final judgment against the licensee, arising and growing out of the conduct of the business licensed under this ordinance; and further conditioned that any person having a cause of action against the obligor of said bond arising and growing out of the conduct of the business licensed under this ordinance may sue in his own name and recover on said bond without the joinder of the City of Fort Worth or the Mayor of the City of Fort Worth " therein; and further conditioned that such person or persons may sue and recover upon said bond from time to time until the full amount is exhausted. Whenever recovery has been had on said bond so that the same is depleted or exhausted, the licensee shall immediately file a new or additional bond as herein pro- vided for the original bond so as to maintain at all times a good and sufficient bond in the full amount of One Thousand Dol- lars ($1,000.00). SECTION So It shall be unlawful for any licensee hereunder by the use of any artifice or subterfuge to demand or receive any greater rate of principal or interest than is provided for in the contract. SECTION 9. It shall be unlawful for any licensee hereunder, his agents, servants or employees, to communicate with the employer of any borrower relating to any loan made by the licensee to the borrower, with intent to harass or annoy the employer of the borrowero SECTION loo It shall be unlawful for any licensee hereunder to com- municate with any person other than the borrower in an effort to collect any debt growing out of business conducted by such licensee under said license, which debt is made up in whole or in part of usurious interest* SECTION 11* Each licensee hereunder shall keep a complete set of records showing a list of loans made, giving the name and ad- dress of the borrower or borrowers, the amount of cash actually lent and the amount of principal and interest the borrower agreed to pay, whether such transaction was an original lend- ing or a renewal of an existing loan, the amount of money paid to the licensee by the borrower and how the same was credited; that such books and records shall at all reasonable times during business hours be subject to inspection by the City Secretary of the City of Fort worth and his duly authorized agents* SECTION 12. Any license herein granted shall be subject to revoca- tion by the City Council of the City of Fort Worth after due notice to the holder of such license and hearing thereon, upon proof of the violation of any of the provisions of this ordi- nance. SECTION 13. Any person, firm or corporation who shall violate any of the provisions of this ordinance shall, upon conviction there- of, be fined in any sum not to exceed Two Hundred Dollars ($200.00), and each day' s operation without a license as herein provided for shall be considered a separate offense. SECTION 14. This ordinance shall not apply to any person, copart- nership, association or corporation doing business under and as permitted by the laws of this State or the United States, relat- ing to banks, savings banks, trust companies, building and loan companies, Morris Plan Banks, licensed credit unions, licensed rural credit unions, agricultural and livestock pools and farm- ers' cooperative societies. SECTION 15• If any clause, sentence, section, provision or part of this ordinance shall be adjudged to be unconstitutional or in- valid for any reason by any court of competent jurisdiction, such judgment shall not impair, affect or invalidate the re- mainder of this ordinance, which shall remain in full force and effect thereafter. SECTION 16* All ordinances and parts of ordinances in conflict with the provisions of this ordinance are hereby expressly repealed, SECTION 17. This ordinance shall become effective and be in full force and effect from and after the date of its passage and Publication as required by law. APPROVED AS TO FORM AND LEGALITY: ulty -Ittorney